ESR Jumps Most on Record Following Consortium Takeover Bid

(Bloomberg) -- ESR Group Ltd. shares climbed the most on record Tuesday after the firm received a non-binding takeover proposal from a consortium of investors, confirming an earlier Bloomberg News report.

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ESR surged 26% to close at HK$12.6 in Hong Kong, the highest since Aug. 10.

Starwood Capital Group, Sixth Street Partners and SSW Partners have submitted a proposal about a possible privatization, ESR said in a statement Monday, when trading in its shares was suspended. Citigroup Global Markets Asia Ltd. is acting as a financial adviser on the proposal, ESR said.

While considerations are at an early stage and there is no certainty of a deal, ESR backers including its founders and Warburg Pincus welcome the indicative proposal and believe it is in the best interests of shareholders, it said.

Read More: ESR Gets Non-Binding Takeover Bid From Starwood Consortium

Some existing investors may roll over parts or all of their stakes in a deal, according to people familiar with the matter, who asked not to be identified discussing confidential information.

ESR’s shares jumped 9% on Feb. 21 following a previous Bloomberg report that owners were considering options for the company, including taking it private. Still, the shares went on to hit a record low of HK$7.45 in March.

ESR ended Tuesday with a market value of about $6.8 billion. The company, which describes itself as the biggest real-asset manager in the Asia Pacific region, listed in Hong Kong in 2019. At a peak in February 2021, it had a market value of $11.8 billion.

--With assistance from Pei Li.

(Updates share moves in first, second and final paragraphs.)

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